DoD's $12.7M R&D contract with Boeing for physical sciences research shows fair value, but limited competition raises concerns

Contract Overview

Contract Amount: $12,696,871 ($12.7M)

Contractor: THE Boeing Company

Awarding Agency: Department of Defense

Start Date: 2007-09-27

End Date: 2011-08-31

Contract Duration: 1,434 days

Daily Burn Rate: $8.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RAPID LINK

Place of Performance

Location: TUKWILA, KING County, WASHINGTON, 98108

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to THE BOEING COMPANY for work described as: RAPID LINK Key points: 1. Contract awarded through full and open competition, indicating a broad search for qualified bidders. 2. The contract type (Cost Plus Fixed Fee) is common for R&D but can lead to cost overruns if not managed closely. 3. Performance occurred over a significant duration (1434 days), suggesting a complex or long-term research effort. 4. The contractor, Boeing, is a major aerospace and defense firm with extensive experience in R&D. 5. While specific performance metrics are not detailed, the R&D nature implies innovation and potential future applications. 6. The contract's value, while substantial, needs to be benchmarked against similar R&D efforts to fully assess value for money.

Value Assessment

Rating: fair

Benchmarking the value of this $12.7 million R&D contract is challenging without specific details on the research outcomes and deliverables. However, given the contractor's established reputation and the nature of R&D, the pricing appears within a reasonable range for complex scientific endeavors. The Cost Plus Fixed Fee structure, while allowing for flexibility in research, necessitates careful oversight to ensure costs remain controlled and aligned with the project's objectives. Further analysis would require comparing the cost per research outcome against similar government-funded R&D projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' suggesting that the Department of Defense actively sought proposals from all responsible sources. The presence of 5 bidders indicates a degree of competition, which is generally positive for price discovery and innovation. However, the specific number of bidders does not inherently guarantee the most competitive outcome without knowing the quality and scope of their proposals. The agency's process for evaluating these proposals would be key to understanding the true competitive dynamic.

Taxpayer Impact: A full and open competition, especially with multiple bidders, generally benefits taxpayers by encouraging competitive pricing and potentially leading to better value. It ensures that the government is not limited to a single provider, fostering a more efficient use of public funds.

Public Impact

The primary beneficiaries are likely the Department of Defense, through advancements in physical, engineering, and life sciences relevant to national security. The contract supports research and development activities, potentially leading to new technologies, improved systems, or enhanced scientific understanding. The geographic impact is primarily within Washington, where the contract was administered, but the R&D outcomes could have national or global implications. This contract supports a highly skilled workforce in research and development, including scientists, engineers, and technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously monitored.
The duration of the contract (over 3 years) may indicate potential for scope creep or evolving research objectives.
Lack of specific performance metrics makes it difficult to assess the direct impact and success of the R&D investment.

Positive Signals

Awarded through full and open competition, suggesting a robust search for qualified contractors.
The contractor, The Boeing Company, is a reputable firm with significant experience in complex R&D projects.
The contract supports critical research and development in physical, engineering, and life sciences, aligning with strategic government objectives.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS code 541710). This sector is characterized by innovation, long development cycles, and significant investment. Government spending in R&D is crucial for technological advancement and national security. Comparable spending benchmarks would involve analyzing other DoD R&D contracts in similar scientific domains, considering factors like contract type, duration, and the specific research areas pursued.

Small Business Impact

This contract does not appear to have specific small business set-aside provisions (ss=false, sb=false). As a large-scale R&D effort likely requiring specialized expertise and resources, it may not be conducive to small business participation as prime contractors. However, Boeing, as the prime contractor, may engage small businesses as subcontractors for specific components or services, contributing indirectly to the small business ecosystem. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor compliance with contract terms and conditions. Accountability measures would include regular progress reports, financial reviews, and performance evaluations. Transparency is facilitated through contract databases like FPDS, which provide public access to contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Research and Development Programs
Aerospace and Defense Technology Development
Physical Sciences Research Grants
Engineering and Applied Sciences Research

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Limited public information on specific R&D outcomes makes value assessment challenging.
Contract duration of over 3 years necessitates ongoing monitoring for scope creep and relevance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to THE BOEING COMPANY. RAPID LINK

Who is the contractor on this award?

The obligated recipient is THE BOEING COMPANY.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $12.7 million.

What is the period of performance?

Start: 2007-09-27. End: 2011-08-31.

What specific research outcomes or technological advancements were achieved under this contract?

Detailed information regarding the specific research outcomes or technological advancements achieved under this $12.7 million contract is not publicly available in the provided data. Contracts for Research and Development (R&D) often focus on foundational science or early-stage innovation, where tangible deliverables may not be immediately apparent or may be classified for national security reasons. The nature of R&D implies exploration and discovery, with success measured by progress in understanding, feasibility studies, prototypes, or scientific publications rather than immediate product deployment. To ascertain the specific achievements, one would need to consult detailed project reports, technical documentation, or agency assessments that are often internal or subject to release restrictions.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other R&D contract types used by the DoD?

The Cost Plus Fixed Fee (CPFF) contract structure is commonly used by the Department of Defense (DoD) for Research and Development (R&D) efforts where the scope of work is not precisely defined at the outset, or where innovation and exploration are primary objectives. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a fixed fee representing profit. This contrasts with other R&D contract types such as Cost Plus Incentive Fee (CPIF), which adjusts the fee based on performance against targets, or Firm-Fixed-Price (FFP) contracts, which are less common for R&D due to inherent uncertainties. While CPFF offers flexibility, it places a greater emphasis on government oversight to manage costs effectively, as the contractor has less direct financial incentive to control expenditures compared to FFP or CPIF structures.

What is The Boeing Company's track record with similar R&D contracts awarded by the Department of Defense?

The Boeing Company has a long and extensive track record of performing complex Research and Development (R&D) contracts for the Department of Defense (DoD). As one of the world's largest aerospace and defense contractors, Boeing possesses significant expertise and infrastructure for conducting advanced scientific and engineering research across various domains, including physical sciences, aerospace, and defense systems. While specific details of past R&D performance are not provided here, Boeing's consistent engagement in large-scale, technologically sophisticated government contracts suggests a generally positive history. However, like any major contractor, performance can vary, and a comprehensive assessment would require reviewing specific contract histories, performance evaluations, and any past disputes or challenges related to their R&D work for the DoD.

Were there any significant cost underruns or overruns associated with this contract?

The provided data does not contain specific information about cost underruns or overruns for this particular $12.7 million contract awarded to The Boeing Company. As a Cost Plus Fixed Fee (CPFF) contract, the contractor is reimbursed for allowable costs plus a fixed fee. While the fixed fee is predetermined, the total cost can fluctuate based on the actual expenses incurred during the research and development process. Assessing cost performance would require access to detailed financial reports and contract close-out data, which are typically not made public. Without such data, it is impossible to definitively state whether the contract experienced significant cost deviations from the initial estimates.

What is the typical duration for R&D contracts of this nature and value within the DoD?

The typical duration for Research and Development (R&D) contracts of this nature and value ($12.7 million) within the Department of Defense (DoD) can vary significantly depending on the complexity and scope of the research. This contract spanned 1434 days, which is approximately 3.9 years. This duration is not uncommon for R&D projects, especially those involving fundamental scientific inquiry, advanced engineering, or the development of novel technologies where timelines are inherently uncertain. Shorter durations might be typical for more focused feasibility studies or prototype development, while longer durations often indicate more ambitious, long-term research objectives requiring sustained effort and iterative development.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: BASIC RESEARCH

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 20403 68TH AVENUE SOUTH, KENT, WA, 98032

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $12,696,871

Exercised Options: $12,696,871

Current Obligation: $12,696,871

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline